‘Mother of all deals’: How India-EU trade deal creates $27 trillion market

Al JazeeraCenterEN 9 min read 100% complete by Yashraj SharmaJanuary 27, 2026 at 04:19 PM

AI Summary

long article 9 min

In January 2026, India and the European Union signed a comprehensive free trade agreement after 20 years of negotiations. The deal, hailed as a landmark achievement, creates a $27 trillion market encompassing 2 billion people and approximately 25% of global GDP. The agreement aims to reduce tariffs and boost trade in goods, services, and investments between the two regions. The EU withdrew preferential trade benefits for India in 2023, so this deal is expected to give India an edge in sectors like textiles, pharmaceuticals, and machinery. The agreement occurred amidst ongoing global economic tensions, including trade disputes initiated by the United States.

Key Entities & Roles

Key Player Opposition Context

Subrahmanyam Jaishankar 40% Kaja Kallas 40% United States 50% New Delhi ×250% Donald Trump ×260% Antonio Costa 60% Ursula von der Leyen ×270% Narendra Modi ×270% European Union ×790% India ×990%

Keywords

india-eu trade deal 100% free trade agreement 90% european union 80% india 80% tariffs 70% geoeconomic crisis 60% global gdp 50% strategic relationship 50% trade war 40%